Amazon just dropped some big news! Their profits have skyrocketed 🤑, doubling to a whopping $13.5 billion thanks to the booming growth of Amazon Web Services (AWS), their cloud computing powerhouse.
While the e-commerce giant's sales hit $148 billion, slightly below what the market expected, the real star of the show was AWS. Revenue from AWS jumped to $26.3 billion, up from $22.1 billion during the same period last year. Talk about cloud nine! ☁️
CEO Andy Jassy is stoked about the reacceleration in AWS growth, saying, \"We're continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth.\"
But it's not all sunshine and rainbows 🌈. Despite the growth, Amazon's shares dipped over 4% in after-market trades. Plus, their advertising revenues came in at $12.7 billion, missing the expected $13 billion mark.
Retail, ads, and cloud computing are the pillars holding up Amazon's empire. But as GlobalData's Neil Saunders points out, \"Amazon will remain very profitable but the pace at which it can add to the bottom line appears to be waning.\"
Amazon isn't alone in feeling the squeeze. Tech giants like Microsoft and Google also saw their shares slip due to slower growth in cloud computing and ad revenues. Seems like the AI race is heating up and costing big bucks! 🤖💸
Interestingly, the head of AWS, Adam Selipsky, left the company in June. Taking over is Amazon's own Matt Garman, stepping in to lead AWS as it continues to capitalize on the growing demand for cloud and AI services.
AWS holds a massive 31% of the cloud computing market as of the end of 2023, according to Stocklytics. But with rivals like Microsoft and Google gaining ground, the competition is fiercer than ever. The battle for cloud dominance is on! ⚡️
And let's not forget about the AI revolution. While AWS might not have flashy AI brands like ChatGPT or Google's Gemini, they're offering powerful cloud services to businesses diving into the AI game.
Keep an eye on Amazon as they navigate this exciting yet challenging landscape. Will AWS continue to drive profits sky-high? Only time will tell! ⏳
Reference(s):
cgtn.com
